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Taiwan invests in Alaska LNG to ensure energy security

Taiwan invests in Alaska LNG to ensure energy security

CPC Corp, the state-owned energy company in Taiwan, signed an agreement on Thursday with Alaska Gasline Development Corp. to purchase liquefied gas and invest. Taiwanese President Lai Ching Te said that this move would guarantee the island's security of energy.

This week, officials from the state-run AGDC as well as Glenfarne Group's development partner are in Asia to attract investors for the natural gas project. President Donald Trump claims that the project could bring trillions of dollars back into the U.S. Analysts say however that the project has been plagued by high costs for many years.

CPC wants to be a part of the upstream investment in gas project to ensure stable energy resources in Taiwan, said the island's Ministry of Economic Affairs in a press release. The move will "effectively reduce shipping time and risk, increasing the reliability of Taiwan's supply of gas."

The ministry stated that CPC signed a letter indicating its intent to invest and purchase LNG, but did not provide any further details.

Lai stated that natural gas from Alaska can "meet our needs and ensure our security of energy" at a dinner in Taipei. Alaska Governor Mike Dunleavy was also present.

Dunleavy responded that by diversifying its LNG supplies, Taiwan would be able to secure long-term gas supplies from Alaska. This "would ensure stable energy prices, and a consistent supply, from a friendly neighbor for many decades."

Officials want to bypass the Panama Canal and ship gas from Alaska's remote northern region via a 1,300 km (800 mile) pipeline worth $44 billion. The gas will be sent as LNG to Japan South Korea Taiwan.

The United States is Taiwan's most important international backer and arms supplier at a time when China has ramped up military pressure against the democratically-governed island that it claims as its own. Taiwan rejects China's claim of sovereignty.

Taiwan's Defence Ministry said this week that it will intensify military cooperation with the United States, including intelligence sharing and joint tabletop exercise. This comes amid an increased military threat by China. Reporting by Wen Yee Lee, Yimou Lee, and Florence Tan. (Editing by Alex Richardson, Mark Potter and Mark Potter.)

(source: Reuters)